Historic Algozzini's Tropical Paradise lot sold at auction

HOBE SOUND ? The landmark site of the former Algozzini's Tropical Paradise on U.S. 1 may become a produce stand in its next life.

The quarter-acre lot was bought in an absolute auction Wednesday afternoon, along with two adjacent lots that have single-family homes, for $588,500 by retired farmer Mark Simpson, a Hobe Sound resident.

"It's a neat old building, and I've always liked it," said Simpson of the 4,186-square-foot store.

Two other lots to the east, with frontage on Dixie Highway, totaling about 6.4 acres were bought by Orlando-based residential real estate developer Jeff Gelman, who said he plans to build town homes on the site already zoned for that purpose.

Gelman also owns an 18-acre parcel around Harry & The Natives on the southwest corner of U.S. 1 and Bridge Road, for which site plan for town homes is being prepared.

Algozzini's Tropical Paradise evolved from a roadside hamburger stand built in 1947 into a gift shop and a fruit shipping business that run by Hobe Sound pioneer Philip Algozzini, known for his brightly colored Hawaiian shirts, until shortly after his death two years ago.

The store closed when Algozzini's sister, Elaine Gedemke, and her four children could not agree on how or who should run it. After that dispute led to lawsuits, a court ordered the auction, which was conducted by the Hartman Auction Group of Palm City.

David Ralicki, of Ralicki Wealth Management & Trust Services, the trustee for Algozzini's estate said, "Our job was to liquidate the property and provide income to the beneficiaries of the estate, plus we have to provide income to Mrs. Gedemke to maintain her lifestyle."

He said the estate will net $710,000 from the sales, not quite 60 percent of the value determined in an April 2013 appraisal.

Ralicki said he received some offers for the property before the auction, "but everything had contingencies on approvals for certain uses that would have tied up the property for six to nine months."

Gelman said if he builds the maximum allowable eight units per acre, he will have paid "about $3,000 a unit for the dirt. That's awfully cheap, even for apartments."